Parsippany-based Wyndham Worldwide Corp. announced Thursday it has agreed to sell its European vacation rental business to Platinum Equity, a private equity firm, for $1.3 billion.
In conjunction with the deal, the European vacation rental unit has entered into a 20-year agreement to pay a royalty fee of 1 percent of net revenue to Wyndham’s hotel business for the right to use the “by Wyndham Vacation Rentals” brand.
The business has more than 110,000 units in over 600 locations in more than 25 countries, and operates more than two dozen brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons. It generates approximately $750 million in annual revenue.
“Along with our planned separation and recently announced acquisition of La Quinta’s franchising and management businesses, this is another important step in the evolution of our Company,” said Stephen P. Holmes, chairman and CEO of Wyndham Worldwide. “Our European vacation rental brands deliver a great consumer experience, have high brand recognition in their markets and have delivered strong, consistent results. Our goal has always been to position them for continued long-term growth. We conducted a rigorous strategic review process that generated strong interest from multiple parties, and we were pleased to find the right buyer. We are confident that, as part of Platinum Equity’s portfolio, these businesses will have a bright future and will provide significant opportunities for their associates and business partners.”
Deutsche Bank and Goldman Sachs are acting as financial advisers, and Kirkland & Ellis International LLP and Dechert LLP legal advisers to Wyndham Worldwide. Financing for the deal will be led by Bank of America Merrill Lynch. Latham & Watkins is serving as legal counsel to Platinum Equity.
The deal is expected to close in the second quarter of 2018.
